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Mopowered plunges after lowering revenue guidance

Shares in AIM-listed MoPowered slumped 40% on Tuesday morning after the group warned its full year results for 2014 would be affected by a delay to some of its deals.

The mobile commerce company said its revenue for the period would be "more modest" than previously expected for both the current year "and beyond".

While revenue growth had continued to grow strongly, up more than 60% half-on-half, earnings had grown by less than expected.

"After a strong first quarter, some of the larger deals which the group had expected to complete in the second quarter of 2014 have now slipped into the second half of the year, which will impact the expected results for 2014 as a whole," it explained.

It also reiterated its previous announcement that the rate of launching live mobile sites for smaller SME customers had been lower than expected due to operational constraints and challenges in acquiring these customers cost-efficiently, which it said would also contribute to the lower than anticipated turnover.

"The overall market conditions for sales of mobile commerce solutions remain strong and MoPowered continues to build up distinct competitive advantages that are attractive to new customers and give confidence for the long-term," it added.

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